By Marisa Wong
Madison, Wis., Dec. 5 – UBS AG, London Branch priced $29.12 million of contingent income autocallable securities due Dec. 3, 2015 linked to Alibaba Group Holding Ltd. American Depositary Receipts, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly payment at an annual rate of 12% if the shares close at or above the 70% downside threshold level on the observation date for that quarter.
The notes will be called at par plus the contingent coupon if the stock closes at or above the initial price on any of the first three determination dates.
The payout at maturity will be par plus the final coupon unless the shares finish below the 70% downside threshold level, in which case investors will receive a number of Alibaba shares equal to $10 divided by the initial price or, at the issuer’s option, the cash value of those shares.
UBS Securities LLC is the agent with Morgan Stanley Wealth Management handling distribution.
| Issuer: | UBS AG, London Branch
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| Issue: | Contingent income autocallable securities
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| Underlying ADRs: | Alibaba Group Holding Ltd. (Symbol: BABA)
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| Amount: | $29,117,850
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| Maturity: | Dec. 3, 2015
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| Coupon: | Contingent quarterly payment of 12% per year if shares close at or above downside threshold level on quarterly observation date
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| Price: | Par
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| Payout at maturity: | Par plus final coupon unless shares finish below downside threshold level, in which case a number of Alibaba shares equal to $10 divided by initial price or, at issuer’s option, cash value of those shares
|
| Call: | At par plus contingent coupon if stock closes at or above its initial level on any of first three determination dates
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| Initial price: | $111.64
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| Downside threshold: | $78.15, 70% of initial price
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| Pricing date: | Nov. 28
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| Settlement date: | Dec. 3
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| Agent: | UBS Securities LLC with distribution through Morgan Stanley Wealth Management
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| Fees: | 1.75%
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| Cusip: | 90274F197
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